SMART MOVES
BY ANDREW RISSIK
Relocating Wealth
Moving money internationally
M
oving your money offshore, whether you
are buying property or investing, can
present a minefield of tax and bureaucratic
obstacles. Every country has its own policies on
managing currency exchange and foreign investment
and there can be serious pitfalls for the unwary.
In South Africa, the South African Reserve Bank
(SARB) allows you, as an individual, to move up to
one million Rand per annum under a discretionary
allowance without ta x clearance, and another
four million with tax clearance. This gives a large
opportunity for investment, particularly if your
spouse has a tax number as the amount could be
doubled; but moving that amount of cash on your
own can be complicated, costly, and time consuming.
Timing is everything
When investing offshore, timing is everything.
Currencies are constantly f luctuating and moving
money for an overseas investment carries with it a
certain amount of risk. Having options, like being able
to lock a forward exchange rate to hedge this risk, or
move your money quickly, can make all the difference.
W hen you pl a n to mov e you r a l low a nc e
offshore, using your bank to transfer the funds
is not necessarily the best option. They will not
always initiate the transfer immediately, charge
unnecessary fees and will not offer you the best
exchange rate. The process can take around five
working days, and the final amount you receive
will be uncertain until it is complete. On top
of that, it is your responsibilit y to obtain ta x
clearance from SARS and report your money
correct ly. This a l l can make doing business
internationally very frustrating.
12
Offshore Handbook 2014
South Africa’s foreign exchange regulations are
complex. Moving money in and out of the country
requires expert knowledge and understanding.
Below are some questions to ask before you choose
a currency broker.
Choose the right currency broker
• Is the broker regulated and authorised in all
jurisdictions by the relevant authorities?
• Is the broker regulated and authorised in South
Africa by the Financial Services Board, the
SARB, and the Financial Intelligence Centre?
• Are the broker’s consultants skilled and
experienced in trading foreign exchange and
processing international transfers?
• Do the consultants know intern ][ۘ[[ۙ^B